Feb 16, 2013 9:00am PST
is we will reduce spending for $1 for every dollar that we raise the debt ceiling back in august 2011. that's what a lot of folks forget, alex, is that this is the last piece of the august 2011 debt ceiling agreement whereby the president, senate democrats and house republicans said, okay, let's raise the debt ceiling but for every dollar we raise that debt ceiling, we'll lower spending by a dollar. so i am in favor of keeping that agreement. >> but keeping that agreement, if the sequester goes into effect, according to the cbo, it says it will cut u.s. growth in half. it will cost at least 1 million jobs and jobs by extension, consumers, which drive the economy. don't you agree that losing 1 million jobs will be disastrous to the recovery? >> if you turn just to the cbo, the stimulus of three years ago would have solved all of our problems and we would not have had all the difficulties we have today. would have led to tremendous gdp growth. neither does the cbo ever report or take into consideration the impact the huge debt has on the growth of our gdp and job creation. we can have a
Feb 16, 2013 10:00am PST
on this show in mid-january. we discussed the debt ceiling. you voted against the deal to suspend the debt ceiling with 34 of your fellow senators but it passed anyway. what yo do you need to see in a bill to avoid the sequester sometime between now and the end of february? >> ali, first of all, as someone who did run a business for 22 years, i'm embarrassed about the way we're operating the country right now and i want to say that up front. sequestration is a bad idea. we ought to be doing our business, approapriating and budgeting, making decisions on cost b-benefit analysis. these continual deadlines and cliffs is no way to run a country much less a company. >> when you run a company, you have these things called poison pills. that's what the sequestration was. something to awful it would prevent a certain course of action from taking place. why is it that elected officials don't treat that the same way that you would if you were in business? if you had a poison pill in your business to say if you don't do something x will happen or if you do x would happen, you'd avoid that bad thing.
Feb 16, 2013 1:30pm EST
? >> that is right. >> would it be reasonable, confronting a fiscal cliff in january, potential debt ceiling default in march, sequestration, or ceiling default in february, sequestration in march, government shut down in april, another potential debt ceiling in may, could shake the confidence of some investors in our ability to deal with our responsibilities? >> yes. we think the crisis mode of fiscal policy over the last few years is reducing people's confidence. how big of an effect that is, we don't know. >> the gentleman's time has expired. >> i think by anyone's objective measure in this town or country, we would consider you a smart man and a good economist, right? >> thank you. >> it befuddles me, it strikes me that some of us want to spee chify other than uses precious time to engage you in questioning. -- use this precious time to engage you in questioning. i will try to continue on in that regard. speaking of speechifying, we heard it is impossible to get ourselves out of this debt situation by spending cuts alone. i want to understand if i am correct that the cbo projects that revenue w